Tottenham Hotspur’s Issue of Money

Professional sports are a business and at the end of the day it’s all about one thing and that’s money. At times I believe some people don’t see a professional athletic club in the same light as a Microsoft or a Google. But of course they need money to survive. The more you want to succeed, the more money will require in rising to the top. This is the case for Tottenham Hotspur. Tottenham in the last few years have been attempting to challenge the established leaders in the English Premier League. In doing so they are going up against some of the wealthiest clubs in England. not to mention Europe. Granted Tottenham’s revenues have been increasing but not enough as compared to other big clubs. For Tottenham to successful break the old guard they need to address the serious issue in how they generate money to compete in this demanding sport.

One of the most obvious issues the club needs to address is their stadium, White Hart Lane. White Hart Lane can accommodate roughly 36,000 fans. That’s a rather low number when comparing to other top clubs: Old Trafford ~ 76,000, Emirates Stadium ~ 60,000, Etihad Stadium (The City of Manchester Stadium) ~ 48,000, Anfield ~ 45,000 and Stamford Bridge ~ 41,000. Both Chelsea and Liverpool have expressed desires and plans to expand their seating capacity to 50,000 plus. Harry Redknapp has expressed on several occasions the difficulty to compete against clubs that can accommodate more than 36,000 fans. It’s about all those match day ticket receipts. Manchester United generated £100 million on match day gate receipts and Arsenal took in £94 million, based on last season figures (2010-11). While Tottenham collected £27 million on match day ticket sales. That is an increase from £20 million in 2009-10. Plans have been in the works since 2007 to address the need for a larger stadium, so more can be gained in ticket sales.

The first and most realistic plan is the Northumberland Development Project. This plan would create a new stadium that could accommodate roughly 56,000 fans, which is a dramatic increase from 36,000. The project calls for the construction of 200 homes, a hotel with 150 rooms with a restaurant, club mega store, club museum, café, new offices for the club, and a supermarket. Aside from ticket sales the other aspects of the project would generate a great deal of money for the club as well. No doubt increasing the commercial activity of the club certainly would be a positive move. Also, the project would have a public square for events such as ice skating and street markets. In addition there are plans for historical restoration of local buildings. This is very familiar to what has been done with Major League Baseball stadiums in the United States, which has been successful in creating more money and restoring economic life to the downtown cities. The Northumberland Project would be constructed in the area around White Hart Lane so the need to re-locate wouldn’t be an issue. However, the issue not having a convenient underground station near the stadium would still continue to be a problem. The green light was given to the project by the Mayor of London in November 2010. The plan was to move into the new stadium (partially constructed) for the 2012-2013 season, with it being fully constructed by the 2013-2014 season. As a Spurs supporter this project sounds like a very sound and positive proposal to help restore economic strength to the club. However, something else caught the chairman’s eye, the Olympic Stadium.

London will be hosting the 2012 Summer Olympic but once the Olympics have concluded, the stadium will be available for use. Tottenham along with other clubs made a bid for the stadium. The Olympic Stadium certainly has some very attractive qualities. I think the most attractive thing about the stadium is its 80,000 person seating, which would make it the largest stadium in the Premier League replacing Old Trafford. The proceeds from the tickets would be amazing and could provide several millions of pounds per-home game, depending on ticket prices. The location would be central with easy access via public transportation. Depending on how one feels about location loyalty that could provide an issue with some fans. The Olympic Park Legacy Company awarded the stadium to West Ham United on November 12, 2010. Tottenham lost their judicial appeal in June 2011 but were given new hope in July when it was discovered when an employee of the Olympic Park Legacy Company acted as an agent for West Ham United. Tottenham sought another judicial review in hopes of overturning the original decision. Putting aside the final outcome of the decision, I believe the best option for Tottenham is to go forward with The Northumberland Project. Despite the stadium seating, I think Levy should back off the Olympic Stadium. The increase from 36,000 to 56,000 is a massive leap forward and along with the other commercial activity associated with the project will generate the necessary revenue for the club in the long term. Plus, for the sake of tradition and history the stadium would remain in the Tottenham neighborhood.

Payrolls form one of the biggest parts of a club’s budgets. Tottenham has been dealing with the issue of surplus players for while. Several players weren’t featured in first team last season or if they were saw very little playing time, but were still on the payroll. The most obvious thing is to loan out the players or just sell them, which Tottenham hadn’t been doing. A lot of that had to do with Levy demanding too much in the sale of players. I was please during last summer’s transfer when the club finally decided to sell or loan out players, thus reducing the wage burden on the club. If a player is no longer in the future plans of the club sell off the player. If you think the player requires more training or experience then loan them out. Just off loading Robbie Keane removed the highest paying player from the payroll (80,000 per week). Levy needs to understand a player will only get what the market is asking or demanding. Just because you brought a player at 10 million pounds doesn’t mean you’re going to get that back in a few years. It really depends on the perceived view of the player’s ability and the needs of a club. There is no point holding onto to players you no longer want, get the best available price and move to the next deal. I hope Levy is beginning to understand this idea.

I believe one of the areas that Tottenham needs to improve is their international appeal. There can be no doubt that Manchester United has been extremely successful in marketing their image. Success on the pitch creates success off the pitch. As a club they have so much going for them. Before his departure David Beckham certainly left a lasting impact on the club. David Beckham was able to make himself something more than just a player, he became a pop icon. His marriage to Victoria (“Posh Spice”) only added to their success. No doubt the sales and marketing people at United were amazed and delighted with what was taking place and the success it brought to Manchester. The sales of club apparel/merchandise worldwide took off, Asia one of the most successful markets. People may have not known much about Manchester United or football but they knew David Beckham. In 2002 “Bend it Like Beckham” was released and just added to the success of the Beckham/United brand. Manchester United has 200 officially recognized branches of the Manchester United Supporters Club (MUSC) in twenty four countries. The Daily Mail reported on June 24, 2010 there could be as many as 333 million fans worldwide. October 2011 United will offer an IPO on the Singapore Exchange to expand club business in Asia and to help with their mounting debt. Many of the Manchester United supporters are attracted only by their success that is true of any sport look at the New York Yankees. I have met many individuals in the United States who support Manchester United and I get the same response, they like them because they are winners, simple as that. People can debate the whole issue of glory seekers but success equals popularity. However, that success translates into profit and people like winners. Does anyone really believe the management of Manchester United care if they have glory seekers in the world, as long as they watch/attend the games and buy their gear they are happy. Under Harry Redknapp, Tottenham have improved but they need to take it a step further and I think Manchester United offers a very nice blueprint.

Despite the economic turmoil in the world the United States is still the strongest market to sell in. Americans love to spend even with a decline in overall personal spending there is a turnaround in Americans regaining their purchasing power. Arsenal, Chelsea and Manchester United either have supporters clubs or mega stores in the United States to accommodate their US supporters. In the last two years Manchester United has participated in per-season summer tours in the US. I don’t think there can be any argument in the marketing success of those summer tours. If you watched the games the stadiums were filled with Manchester United supporters. I went the Manchester United and Seattle Sounders match and the place was pack with over 67,000 fans and saw rows of red shirts. While this was going on Tottenham did a tour of South Africa, which I am sure they had a good time and the fans enjoyed the matches. From an economic standpoint I really don’t see the point and see it as a waste of time. You want to travel to locations that will provide you with the greatest exposure and the opportunity to cash in. What does South Africa really offer Tottenham? The per-capita income of an average South African is around $10,000 and a 25% unemployment rate. Not much for disposable income. In the United States the per-capita income is close to $50,000 with an unemployment rate hovering around 9%. If Tottenham want to increase their international appeal it must be done in the United States or perhaps Asia. China and along with the rest of Asia, despite the current economic problems remain a growing economic region in the world. Chelsea did an Asia tour during the summer, which I think was a good marketing strategy to help further their appeal. With the political, economic and uncontrollable drug trade associated with Mexico, Central and South America I don’t really see this region as strong base for Tottenham to exploit. Plus, South America has very strong domestic leagues with fans all around the world.

With United having concluded two consecutive tours I doubt they will be back in the United States for the time being and most likely will tour Asia during the next summer per-season. I think this presents Tottenham with a wonderful opportunity to fill that vacuum. They should plan and launch a five or six city tour of the United States. I am sure there will competition from other clubs for US fixtures but early planning and targeting key US markets/cities is just what Spurs require. I would suggest two cities on each coast and one or two in the central part of the country. Perhaps being the opponent for the MLS All Star Game. Tottenham are affiliated with the San Jose Earthquakes so I would think they would be on their schedule and plus it would cover the entire bay area. Seattle has been proven to be a popular market for soccer and could be considered as well. Places like Washington DC, New York, Chicago, Dallas or New England would be very good selections as well. It would be ideal to have MLS support with their clubs in the matches but if they refuse. Work with other international clubs to play in the US during the summer. In the process Spurs should begin to organize their fan base in the US in the fashion that United have done. Further, the creation of a Spurs super or mega store in the US would be extremely helpful in furthering the merchandising of their product.

Television/broadcasting is another way for the club to enhance their resources. I know some clubs brush off the League Cup with more focus on the FA Cup and title race. Some clubs see Europa League in the same fashion. Harry Redknapp hasn’t been quiet concerning his feelings on that subject. I would like to see Spurs put every effort in all cup and Europa League matches. The more you stay in the competition the more you gain from broadcasting rights. The further you go in the Europa League the more money you make, there is your incentive. The addition of any silverware to a club is another selling point to future players and fans to demonstrate a commitment for success. Whether the Champions or Europa League the thrill of playing against top quality teams in Europe is what players and fans both want.

Tottenham don’t have an icon player like Beckham to feed off and they don’t have billionaire owners either. They need to find other ways to increase revenues so they can compete with the higher wage clubs. You want to give players a reason to play for you. Football players are no different than other working persons; they want the best possible wage and work for the best. Players go to Manchester City or Chelsea because they can pay high wages and the hope of winning. Almost no player joins a club because of the history or the tradition, that would be nice but it’s not the reality. It’s all about the money.

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GPyneSeptember 13, 2011

Baltimore-based Under Armour will be Spurs’ kit provider starting in 2012-13. I fully expect to see Spurs come to the US next summer, with one game in Baltimore, which has landed Chelsea-AC Milan and Man City-Inter in recent years. I agree they need to focus on gaining more international fans and should simply move forward with Northumberland. This Olympic Stadium idea is not a good path forward.

Yes, I think the Under Armour deal will be very helpful a strong US company making a good dent in English football. If they go to Baltimore to play it will give me a chance to see the Orioles play as well.

I had to stop reading this half way through… The facts and assertions are just plain wrong on such a basic level. Tottenham where going to tear down the Olympic Stadium and rebuild a football only 60,000 seat stadium. Not become the largest PL stadium at 80,000. As for the assertion that the bid process was reopened because of some West Ham wrong doing??? where did you make that up. It was opened again because Spurs argued that West Ham had an advantage because their bidding partner was Newham Council. The irony being that Spurs partnered with mega rich entertainment company AEG, not the local government. Further the Spurs new Tottenham stadium has been on the rocks because of opposition by it own local council. Recently after the riots London major Boris Johnson promised £8mil of £20 that was set aside after the riots for the new development. But that has come under fire as locals want that money to be directly put into the council not a football club. Also the use of seats as the main source of revenue and rebuilding a community is just plain wrong. Arsenal for example gets big match day return, not by the quantity of seats but the quality. Corporate boxes bring in the big pounds… and Ask the south Bronx how the new Yankee Stadium has turned around its community…. hint, it hasn’t.

I understand you are a fan, but you have to have a basic understanding of which you post. Your central point is very valid for the growth of Tottenham, but the way you laid it out made it totally invalid.

It was reported that individual from the Olympic Stadium was working or acting as an agent for the bidding process. This is an opinion piece. I would like to see this happen regardless of what the locals or local government thinks. That is the point of an opinion piece. This isn’t a blueprint for a local government to vote on, just a story. I understand it has been on the “rocks” but I still think it is a good idea, which was the point of the story.

There is opinion, but opinion based on falsehoods is ignorance. You lay out your argument on falsehoods. So this is just an ignorant mastrabatory exercise in fantasy.

as for “It was reported that individual from the Olympic Stadium was working or acting as an agent for the bidding process.” You mean the one Tottenham hacked and is now under investigation by Scotland Yard? Cause if you did ANY research you know that West Ham has been cleared of those charges, and it is not Tottenham in the hot seat over THAT issue. And its clear by this you know less then I thought…

Ill-informed article, unaccurate at best, I mean come on lecturing levy on when to buy and sell?!?! He runs a multi million pound sports investment company and controls spurs on thier behalf, he knows what he’s doing, -anythings worth what anyone will pay. – he held out and took advantage of a improved offer, hes sold berbatov & carrick for mountains more than thier perceived base value through nothing other than shrewd negotiations, we should have won the olympic bid through nothing other than it was the best option. However it wasnt the most popular so West Ham took it, move on. following chelsea man city example is a monstrous idea look at thier wages v income its over 90%! spurs sit at 50%. What happens when mr moneybags owner has enough of his new toy? – everyone jumps ship and thier relegated within 2 years. man united have capitilised from winning trophies for 15 years and shrewd management NOT selling an extra million shirts in asia.

The only bit you got right was – bigger stadium – bigger income – bigger allowance of wages. thats it. you still have to manage the security of the football club. ive supported tottenham for two agonising decades. This is the strongest team ive seen and the next step will need 4th spot consistently and a bigger stadium.

Levy is hardly the problem… its Joe Lewis. Its been swirling since Tottenham put a bid on the Olympic Stadium, that it was down to Lewis and his desire to pump up and dump Spurs for a big payday. I’m sure that’s nothing new to a Spurs fan to hear or fear.

It so frustrating to read things on this blog that are just wrong. I have no problem with opinion, but when you lay out a framework of a story based on what looks like a poorly written wikipedia page by a PR company @ http://en.wikipedia.org/wiki/Northumberland_Development_Project its very difficult to take and frankly insulting. Its the sort of pub speak misinformation you’d expect in gossip. I wonder if the Gaffer even read this before it got posted.

DOOOOOD I am aware of the project since Tottenham started talking about it in 2008 or so… My point is you basically assert word for word the key points from the wiki page… which if you look at the IP on record on said page would show a nice London PR company as the editor… and if Spurs hadn’t crafted that page then they should be ashamed of themselves. from a PR perspective.

I appreciate that you state “facts” and I will admit you seem better informed than most on this subject. However, better informed doesn’t equate to correctly informed.Its importnat to note that the injunction filed was joint between both Spurs and Orient. The claim of the injunction was regarding the loan secured with Newham as creating an unfair economic advantage due to public aid and resources. OLPC ruled it was a fair process but that this key point was arguable. That is why there is a hearing on Oct. 18th. West Ham is challenging how the information was obtained, not the actually information. What’s that tell you?

With this, Levy and Co have met with London officials regarding funding for NDP. It does appear that the poltical support is in place for NDP and the funds from the riots hav been given to begind development around NDP.

So at the end of the day West Ham most likely will still get Olympic Park and Spurs will get NDP and the public funding that they’ve wanted all along. Thank you West Ham for assisting in us getting the funding that we wanted for a true football stadium. Enjoy Olympic Park! Levy is pretty smart after all!

Spurs Orient and West Ham will end up getting what they want. Orient never really was bothered about West Ham invading its territory… Most Orient fans are also West Ham. Barry Hearn has played this well and will likely end up with the 10,000 seat hockey stadium or building a 15,000 seat stadium on Eton Manor. So good for all of us. but that is beside the point….

And you are incorrect in saying that its about how it was obtained and not the the actual info… If you’d like me top go into it further I can, but the crux is that We hire the girl fired of a West Ham director to help us obtain vendors in the transition to the new stadium. You can imagine the logistics of the conversion… She was in no way associated with any part of the bid process, and that has been validated by an independent review. What is being looked at is how Tottenham hacked her bank and phone records as well as her teenage daughter. Then leaked the info to the Sunday Times. Lets be very clear here… There is Absolutely no wrong doing by West Ham and that is already been proven…

Levy is a very smart man and used West Ham to get what he wants, even if that meant rolling over UK Athletics, wasting Local resources etc… Unlike West Ham who went to the local council and worked it out…

and I have no love for Spurs, but thanks for adding that we went down, this year has been a pretty nice run, and I’m enjoying it thank you very much. I love my club, not the league they play in..

The ongoing legal battle has everything to do with the process that the loan from Newham Council. 40 mil pound loan with short and long term debt of 104 mil pound. Not saying this is wrong doing by West Ham but the court agrees the case has enough validity to be heard. Don’t believe me, check the BBC. http://www.bbc.co.uk/news/uk-england-london-14646806

As far as phone tapping etc… I think it’s been quite clear that Tottenham hired a private investigator to investigate the bid and that’s where these illegal acquiations come in. I will note that nothing formaly has been filed by West Ham or others against Tottenham other then to try and bully Tottenham into a deal to back off the legal proceedings regarding the loan.

To be honest, it seems Tottenham are just continuing with the Oct. 18th hearing because they can. Even if Tottenham pull out Orient still has a very valid case with the bidding process, specifically the 40 mil loan. It will be interesting to see how that plays out but as you said most likely West Ham will have Olympic, Tottenham NDB and Oriten a new 15,000 seater.

As far as West Ham, good to you for staying true to the club and they do have a great shot at being promoted. I would be doing an injustice to Spurs fan everywhere to not mention the relegation 🙂

Draw your attention to the first line… “The police investigation into Tottenham’s bid for the Olympic Stadium appeared to intensify yesterday when police asked West Ham to hand over correspondence in which Spurs apparently offered to withdraw a legal challenge if the Hammers dropped claims of phone hacking.”

“Some clubs see Europa League in the same fashion. Harry Redknapp hasn’t been quiet concerning his feelings on that subject. I would like to see Spurs put every effort in all cup and Europa League matches. The more you stay in the competition the more you gain from broadcasting rights. The further you go in the Europa League the more money you make, there is your incentive. The addition of any silverware to a club is another selling point to future players and fans to demonstrate a commitment for success. ”

I N CO R R E C T

we already have a mutitude of injurys the 26 games required to win the euro cup for example would cripple the premier league finish add on the other 20 odd games needed to take both cups you have yourself a double season.

now look at the premier league model – all teams at the start of the season are equal shareholders, and at the end of the season all monies generated by the best brand in football is divvied out dependant on position so drop those extra 40 games keep players fresh and fish 5th? = more revenue than all the cups put together – finish forth add on 300 million pounds from CL revenues and the higher % of PL money.

I understand the issue of injured players but the club and the players still have a responsibility to do their best in all matches. They are being paid a lot of money to play this game and so they should.

I think Levy should actually be commended for keeping Spurs profitable with such a small albeit regular attendance. They are also one of the few clubs with a wages cap. What this article fails to understand is bigger stadium means bigger overheads and requires practically selling out each home game to keep pace. New stadiums are not purchased through petty cash. Loans and bond guarantees have to be paid back for 20-30 years. White Hart Lane is paid for and the real estate it sits on the best certificate of deposit any club can have. If Spurs had a 80,000 venue I think they would struggle to fill 50,000 (perhaps 60K if playing the top four) but even then with large sections empty. That equates to Spurs paying for 20-30,000 empty seats at a home game. Now ask a “top” player if he wants to join a club to play at a half full stadium or a sold out smaller compact ground.

These are very serious fiscal questions to be addressed before one simply makes a sweeping assessment that bigger ground means bigger revenues.

Was this article written by an 8th grader? How do you publish something without any editing more than spellcheck?

I’m a huge Spurs fan in the US and articles like this annoy the hell out of me. You’re doing a disservice to the fan base attracting new fans by presenting and publishing a poorly written, poorly edited, incorrect article.

How do you write about the stadium problems and not mention the local council’s resistance? Or the lack of funds to expand the existing public transportation lines in Tottenham (which are a prerequisite for expanding the stadium) because of expansion at the Olympic Stadium site? Or Spurs preseason tour of the US in 2010? Or that the owner IS a billionaire (at least pre-financial meltdown, since Joe Lewis was a large shareholder in Bear Sterns)?

Matthew, I’m sure you’re a nice guy and all, but before you write any more about my beloved Spurs, please read more about the club and it’s history–and Manchester United’s which certainly helped build their 333 million global fan base. Also read some Hemingway. Less is more. Also, please edit anything you write a lot more before it leaves Microsoft Word.

If you could please cite areas of incorrect grammer or editing that would be nice. You know once this leaves me it goes through an editing process. I was just saying what I would like to see happen, putting aside issues of local government or individuals living there.. I wasn’t talking about summer 2010 but next summer 2011. When mentioning billionaire owners I was refering to Chelsea and Manchester City. With all do respect I really think you missed the point or idea behind the story. I think you just read into the story in what you wanted to here based on your on preconceived or own prejudices notions.

One club since the early 1990s has been able to increase their stadium capacity significantly when all of the clubs converted to all seater stadiums, whereas the other clubs have lost capacity, some more than others. No one denies that ManU has been able to take advantage of this huge seating capacity for the past twenty years.
. Since ManU’s stadium was located in a commercial area, they have been given planning consents to expand their stadium. Unfortunately, almost all of the other club’s stadiums which were in residential area locations have not been given planning consents. Therein lies the problems facing the other clubs of the EPL. Size does matter.

tottenham came to the US 2 summers ago, and had huge support in the US (i think they played 2 matches in NJ at the redbulls stadium, 1 in san jose, and possibly one other, KC?). There are spurs supporters all over the US, with last year champs league run really gaining more fans.

south africa may not have been ideal, but it’s not like they’re avoiding the US

Yes, they did come here in 2010. They played San Jose, I went to the game. The went onto New York. I just think they can a bigger impact in the US. Nothing against South Africa but as far as marketing and making money it can’t compare to the US.

Spurs have a feeder club in South Africa. Hence why they travel to South Africa to play.

They also have a feeder club in San Jose- the San Jose Earthquakes. Hence why they came to the US last year. You can be egotistical and say that you HAVE to crack the US market to be a good football team. However, lets face it- when Spurs played San Jose they played in front of 10,300 fans. OOOO!!!

The article you wrote has a good idea to it- expansion is what Spurs need. But the points you make have no substance. Which top team puts in their best players to the FA Cup/Carling Cup first few rounds? United skipped out on the FA Cup a few years back to play in the World Club Cup. Big teams don’t need FA Cup/Carling Cup for monetary success. Nor do they need Europa league for monetary success. Do they help? Sure. Hence why if United get to the quarters/semis of FA Cup/Carling Cup with their youngsters they will field a stronger side.

Champions League is where the money is. Spurs are doing a great job of working on their youngsters in the Europa league this year. As a big Spurs fan, I’d much prefer for us to get knocked out of the Europa League in the first round then have to continue playing in it all season long which may (or may not) take a toll on the regular first team. As has been pointed out- to win Europa= about 10-15 games.

Also, I wil lbe cheering on Manchester City and Arsenal in the Champions League despite being an ardent Spurs fan. If they can lose ground in the Premiership because of their first team commitments to the Champions League then all the better for Spurs!!!!

I understand why Spurs went to South Africa. I think the match against San Jose would have been better served playing at Stanford, which holds about 40,000 rather than Buck Shaw. Yes, the money is in the Champions League. I guess with me it’s a work ethic, you always do your best no matter what and I just hope to see that in all the matches. Points well taken and thanks for the feedback.

Ah, what a horrible piece of writing, the stand alone sentences. Apparently the writer just found out that David Beck-ham is married to someone famous and he wants us to know about it. Everything else is written with as much insight as a 6 year old. Even I can do better – surely. Gaffer, are you on holiday?

some people should relax and just appreciate someone else’s opinion and thoughts. if you only want to read your own opinion I would suggest that you write it all down and email it to yourself. read it whenever you want to remind yourself how knowledgeable you are.

and please dont use words that you are uncomfortable with just to add authority to your views – you just sound poorly educated. the newham education authority never has been known for churning out literary greats. having said that, “wossnayme” has always been one of my favourite words. I would put a smiley in here if i knew how to do it on my phone.

i look forward to the first person to point out the lack of capitals in this post.